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0 pointspaulgb5y ago0 comments

> Additionally, the only people left being bag holders here so far are the hedge fund

“So far” is carrying a lot of weight here.

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3 comments · 1 top-level

As long as the price keeps going up, there's no bag to hold yet in this metaphor. We're still at the part of the heist where the vault is being emptied.

paulgbOP5y ago

Let me put it this way, if someone bought GME over the last few days and sold it at 3x what they paid, what fraction of that gain (on average) came from a hedge fund covering a short vs. from another retail investor buying in? The assumption seems to be that it comes purely from a short cover but that’s not at all obvious to me.

polka_haunts_us5y ago

I agree. The holding the bag metaphor comes from a gang of thieves robbing a place and then leaving a patsy behind with all the evidence of the crime and none of the loot. Right now, in my opinion, a lot of the Robinhood faction of the gang are funneling into the vault thinking Joe Wallstreet is that patsy, not realizing that the savvy senior members bailed out an hour ago and the cops are about 2 blocks over and closing. There doesn't have to be just one patsy after all.

The whole metaphor discounts the "I just want the shortsellers to burn b/c anarchy" aspect that some people are claiming, which honestly I think is believed by very few and projected onto many more who really just want quick money.

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